In short, the community banks suffered from bad loans during the economic tsunami that swept in, just like the rest of the country. Smith, who started with the bank in 2001 and became president/CEO in January 2008, said the bank board recognized the financial storm that was brewing during the later part of 2005.

"To our credit, we started the procedures then and were able to turn the corner sooner than other banks," he said. "To the board's credit, they didn't do a lot of finger pointing. Everybody was committed to following the plan. Our motivation was simple. Failure was not an option. Failure was never discussed at board meetings. And, each quarter we were always able to make a little progress."

Some of the banks that were put on notice back in 2008 are now out of business

Under his direction, Clarkston State Bank has downsized assets, investors, reorganized staff and raised more capital. In the middle of August, the bank received word it was no longer on the list.

"We still have work to do," Smith said, "And we will aggressively work towards our goals."

Smith believes in community banking. He says community banks are "the lifeblood of many communities" because they offer loans to small businesses. "We want to reinvest into the local economy," he said.

As the bank moves forward, they are looking for other "good" locations for the bank to operate. "We are looking to grow the bank and rebuild our portfolio and reposition ourselves for 2012."

He also expressed his gratitude to the community, investors and 30-plus employees. "They hung in there with us. Our staff heard the rumors. It wasn't easy for them, so I am very appreciative."

Clarkston State Bank was started on Jan. 3, 1999, when local investors decided the community needed a bank. They took over the building that National Bank of Detroit had moth-balled location on S. Main Street in 1997. Ironically, the bank's current downtown home is the location of the first Clarkston State Bank which opened in 1911.

The bank currently has $113 million in assets. At it's high-point, Smith said the bank's assets total roughly $192 million.

Don is Assistant Publisher for Sherman Publications, Inc. He has worked for the company since 1985. He has won numerous awards for column, editorial and feature writing as well as for photography. He has two, sons Shamus and Sean and resides in the area. To read archived copies of his columns, click on his name, just under his picture up top . . . He can be e-mailed at: don@dontrushmedon.com